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HIDC helps 350 British companies with Brexit supply chain issues

Together with the NFIA and the Invest in Holland network, HIDC has helped 350 British companies with their supply chain issues due to Brexit.

Helping British companies with the logistical challenges they faced as a result of Brexit

350 British companies advised on their European supply chain
94 logistics operations in the Netherlands

Let’s take a look back on 3 years of Brexit/UK projects at HIDC

"I cannot thank HIDC enough for the help that they provided with getting our supply chain up and running again across the European Union."

Micheal Papé, Director at Ravensden

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Jan Paul Olijslager

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350 British companies advised on their European supply chain, 94 logistics operations in the Netherlands

We are very happy that we were able to help these 350 companies with the logistical challenges they faced as a result of Brexit. Most of the time these companies asked us for logistics solutions and/or information and connections in the field of fiscal representation, customs and authorized representation. Our services vary from a consultation about logistical problems to setting up a complete supply chain to Europe.

Out of the 350 British companies we advised, 94 of them started a logistics operation in the Netherlands with a logistics service provider and/or facilitator introduced by HIDC.

Brexit timeline

It all started in 2019, when Brexit was first expected. The Brexit related requests increased in 2020 as companies got prepared. And even more so when the transition period ended in 2021.

After Brexit was finalized British companies found out that their supply chain was not EU proof. Lead times got longer from the UK and costs got higher. Customers on the European mainland started disappearing.

Some of these projects relate to the fiscal aspects of logistics operations. For example, many British companies have been able to use the Dutch VAT deferment scheme through tax representation. And that has a positive effect on cash flow.

The Dutch VAT system

In order to facilitate trade and bring down the administrative and financial burden for Dutch companies the Dutch government made it possible for Dutch companies to make use of the so called ‘postponed accounting’ or VAT deferment. Under this system, VAT does not have to be paid at the moment of importation; instead, it can be postponed to the periodical VAT return. On this periodical return, the postponed import VAT is declared, but at the same time can also be deducted. This results in considerable cash flow and interest-earning benefits for companies importing into the Netherlands.
As a foreign company you will need an Authorized or Fiscal Representative in the country to make use of this (and other) advantages.

More on the Dutch VAT system

Non-British companies also affected by Brexit

It’s not just companies from the UK who experience disruptions in their supply chains because of Brexit. Mostly non-British companies who used the UK as their gateway to Europe had to find a new base of their European supply chain. Of course we’re able to help for those companies as well!

Dr. Jackson’s advice for other (British) companies:

“If you take the EU market serious, you have to open a EU warehouse.”